Staking NEO to generate GAS
If you read the article about generating passive income then you already saw the example with NEO. In this guide, I will go over a couple of ways to stake NEO and generate GAS.
To re-cap from the article, by staking NEO tokens you generate GAS. A service fee is charged when someone creates or changes an asset on the NEO blockchain. GAS is used to pay for this service fee, which is then distributed proportionately to NEO holders. GAS can be traded on exchanges, so you can convert it to BTC, ETH, etc.
Staking at Exchanges
Be very careful when buying NEO and leaving it on an exchange. While NEO is traded on a lot of exchanges, not all of them will give you the GAS that is generated. The two big exchanges that I know of that will pay out your GAS are KuCoin and Binance. If you are not familiar with KuCoin, check out my review here. A review on Binance can be found here.
The easy part comes after finding an exchange that gives the GAS to its users. Just buy some NEO and leave it. KuCoin will payout GAS daily, and Binance pays out monthly. Here is a snapshot of the GAS payout screen from KuCoin:
Note that I only store a fraction of 1 NEO on KuCoin so the GAS payout is minimal here.
Staking in a NEO Wallet
If you don’t want to use one of the exchanges that pays GAS, or just prefer to not keep NEO on an exchange, you can use a private NEO wallet. The wonderful thing about NEO is that you do not need to stay ‘logged in’ to the wallet to generate GAS. You could send it to the wallet and then not open it for a month and you would have your GAS for that entire month.
One of the most trusted desktop application wallets is the NEON wallet. It is a light wallet, which means it does not need to be synced to the NEO blockchain. It has support for Windows, Mac OS, and Linux. Here is the guide for setting up a NEON wallet, which includes a link to the download. Below is a picture of the current user interface for this wallet:
Another option is the safe and trusted web wallet option from NEO Tracker. They also have a block explorer, asset explorer, and contract explorer for the NEO blockchain. You can create or open a NEO wallet at NEO Tracker here. Below is a screenshot to show the main wallet page if you use this option:
At the core, it’s easy to stake NEO and generate GAS, which is passive income. You just need to pay attention to the exchange you buy it on and see if they pay out GAS or not. You can use this handy calculator to figure out how much GAS you will generate with a certain amount of NEO.
Thank you. I bought NEO on Bittrex MONTHS ago and kept it under exchange. Did not come to know there are “GAS” associated with NEO till toay so I have 0 GAS or I am just starting to accumulating my GAS now. Thank you!!
Awesome, glad you found this then! Yeah, it’s unfortunate that Bittrex does not pay out GAS because they must be generating boat loads of it everyday.